YFM

Location – County Durham
Sector – Supplier of products, services and logistics to coal product consumers
Type – MBO

Part realisation in 2009 4x Return 83% IRR

“We are pleased and value the support and advice that we have had from Nigel and from the YFM Group in getting the MBO completed, negotiating the Monckton purchase and in preparing for the IPO.”  Gordon Banham, Hargreaves

Hargreaves is an integrated product and service company offering a specific focus on sourcing and processing of bulk materials. The business had attractive growth markets, strong barriers to entry thus keeping competition at bay, a proven management team and potential acquisition opportunities to increase shareholder value.

• The investment was used to expand operations, enhance the Group's routes to market, and increase their range of products and services.
• With YFM's support the management team refocused specific business areas and expanded product offerings which led to an increase in customer numbers, turnover and profit.
• The Company floated on AiM November 200519 months after the initial investment on with a market cap of £57 m. The market cap as at Nov 2009 is circa £200m.
• YFM was actively involved throughout Hargreaves' development, providing an NED to assist with the finance and due diligence as well as negotiation throughout the acquisition process. In 2005 Hargreaves bought Moncton Coke, followed by Maltby Coal Mine in 2006. Over the following years acquisitions continued at a pace.
• A part realisation in September 2009 created a 4x return on capital so far, an 83% IRR.

“We at YFM Group recognised that management had transformed the business into one with excellent growth prospects in the energy sector and put together the funding to match these dynamics. The company has clearly benefited from the strong and dynamic leadership.” Nigel Barraclough, YFM Group